MIRA INFORM REPORT

Report Date :

15.02.2013


Tel. No.:	0120-3914885

IDENTIFICATION DETAILS

Name :	APPLIED ELECTRO MAGNETICS PRIVATE LIMITED

Registered Office :	M-120, First Floor, Greater Kailash – II, New Delhi - 110048

Country :	India

Financials (as on) :	31.03.2011

Date of Incorporation :	04.10.1979

Com. Reg. No.:	55-009917

Capital Investment / Paid-up Capital :	Rs. 13.463 Millions

CIN No.: [Company Identification No.]	U74899DL1979PTC009917

TAN No.: [Tax Deduction & Collection Account No.]	DELA00652B

PAN No.: [Permanent Account No.]	AAACA1998G

Legal Form :	Private Limited Liability Company

Line of Business :	Manufacturing of Microprocessor based systems.

No. of Employees :	Not Available

RATING & COMMENTS

MIRA’s Rating :

Ba (41)

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

Maximum Credit Limit :	USD 543000

Status :	Satisfactory

Payment Behaviour :	Slow but correct

Litigation :	Clear

Comments :	Subject is an established company having a satisfactory track record. The latest financial of the company are not available. As per previous year’s record, the company is found to be doing well. However, trade relations are reported as fair. Business is active. Payment terms are slow but correct. The company can be considered for business dealings at usual trade terms and condition.

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – June 30, 2012

Country Name

Previous Rating

(31.03.2012)

Current Rating

(30.06.2012)

India

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

INDIAN ECONOMIC OVERVIEW

India is developing into an open-market economy, yet traces of its past autarkic policies remain. Economic liberalization, including industrial deregulation, privatization of state-owned enterprises, and reduced controls on foreign trade and investment, began in the early 1990s and has served to accelerate the country's growth, which has averaged more than 7% per year since 1997. India's diverse economy encompasses traditional village farming, modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services. Slightly more than half of the work force is in agriculture, but services are the major source of economic growth, accounting for more than half of India's output, with only one-third of its labor force. India has capitalized on its large educated English-speaking population to become a major exporter of information technology services and software workers. In 2010, the Indian economy rebounded robustly from the global financial crisis - in large part because of strong domestic demand - and growth exceeded 8% year-on-year in real terms. However, India's economic growth in 2011 slowed because of persistently high inflation and interest rates and little progress on economic reforms. High international crude prices have exacerbated the government's fuel subsidy expenditures contributing to a higher fiscal deficit, and a worsening current account deficit. Little economic reform took place in 2011 largely due to corruption scandals that have slowed legislative work. India's medium-term growth outlook is positive due to a young population and corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. India has many long-term challenges that it has not yet fully addressed, including widespread poverty, inadequate physical and social infrastructure, limited non-agricultural employment opportunities, scarce access to quality basic and higher education, and accommodating rural-to-urban migration.

Source : CIA

EXTERNAL AGENCY RATING

Rating Agency Name	CRISIL
Rating	SME 3
Rating Explanation	Above average credit quality and low credit risk.
Date	December 7, 2012

RBI DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2012.

LOCATIONS

Registered Office :	M-120, First Floor, Greater Kailash – II, New Delhi – 110048, India
Tel. No.:	91-11-29213838
Fax No.:	91-11-29213838
E-Mail :	manojfcs@gmail.com
Website :	www.aemindia.com

Corporate Office and R&D Division :	B-147, Sector 63, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-3914885
Fax No.:	91-120-3083959/ 2406115
E-Mail :	info@aemindia.com

Works and Data Communication Division:	A-108, Sector 63, Noida – 201301, Uttar Pradesh, India
Tel. No.:	91-120-3914885
Fax No.:	91-120-3914877

DIRECTORS

AS ON 30.09.2011

Name :	Mr. Naresh Kumar Aggarwal
Designation :	Managing director
Address :	M-120, First Floor, Greater Kailash – II, New Delhi – 110048, India
Date of Birth/Age :	28.01.1946
Qualification :	B. Tech (IIT Delhi), M.S. (USA)
Experience :	40 Years
Date of Appointment :	04.10.1979
PAN No.:	AAGPA0332B
DIN No.:	00336104

Name :	Mr. Neeraj Aggarwal
Designation :	Director
Address :	M-120, First Floor, Greater Kailash – II, New Delhi – 110048, India
Date of Birth/Age :	15.03.1975
Qualification :	B. Com (H), LLB, FICWA, AMIMA, FCA
Experience :	15 Years
Date of Appointment :	12.07.2011
DIN No.:	00341163

MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN

AS ON 30.09.2011

SHAREHOLDING DETAILS FILE ATTACHED

AS ON 30.09.2011

Equity Share Breakup		Percentage of Holding
Category
Foreign holdings [Foreign institutional investors, Foreign Companies, Foreign Financial Institutions, Non-resident Indian or Overseas corporate bodies or others]		13.30
Bodies corporate		7.20
Directors or relatives of directors		46.77
Other top fifty shareholders		32.73
Total		100.00

BUSINESS DETAILS

Line of Business :

Manufacturing of Microprocessor based systems.

Products :

ITC Code

Product Descriptions

8471

Ø Electronic Control systems Digital Axle Counter

Ø Electronic Control Systems Micro Processor Based Development Systems

Ø Electronic Control Systems Vehicles Tracking Systems

PRODUCTION STATUS (AS ON 31.03.2011)

Particulars	Unit	Actual Production
ASZ System	Nos.	90
Single Section Digital Axie Counter	Nos.	478
HST Printer	Nos.	1001
BEL VCCS	Nos.	16
Data Modem	Nos.	226
Iron Project	Nos.	5
Point of Sale	Nos.	68
GPS (Tata)	Nos.	4025
Infra Red Generator test	Nos.	1
Prime Con Unit	Nos.	55
GPS/ GSRM Mark IV	Nos.	4389
Gateway System	Nos.	250
Modem Card for Reset Box	Nos.	100
Radio Interface unit	Nos.	18

GENERAL INFORMATION

No. of Employees :

Not Available

Bankers :

Ø Bank of India, Okhla SME Branch, DSIDC Complex, Okhla Industrial Area, Phase – 1, New Delhi – 110020, India

Ø ICICI Bank Limited

Ø Kotak Mahindra Bank Limited

Ø Citibank N.A.

Ø HDFC Bank Limited

Ø Barclays Bank

Ø ABN Amro Bank

Facilities :

Secured Loans

31.03.2011

31.03.2010

(Rs. In Millions)

Secured Loans

342.057

235.415


Banking Relations :	--

Financial Institution :	Ø Tata Capital Limited Ø Indian Bulls Financial Service Limited Ø Bajaj Auto Finance Limited

Auditors :
Name :	D.P. Khosla and Company Chartered Accountants
Address :	C-37 Atma Ram House, Connaught Place, New Delhi – 110001, India
Tel. No.:	91-11-23417162/ 23412362/ 23416721
Fax No.:	91-11-23413261
E-Mail :	dpk@bol.net.in
Website :	www.dpkhosla.com
Income-tax PAN of auditor or auditor's firm :	AAAFD4444M

CAPITAL STRUCTURE

AS ON 31.03.2011

Authorised Capital :

No. of Shares	Type	Value	Amount

2,000,000	Equity Shares	Rs. 10/- each	Rs. 20.000 Millions

Issued, Subscribed & Paid-up Capital :

No. of Shares	Type	Value	Amount

1,346,291	Equity Shares	Rs. 10/- each	Rs. 13.463 Millions

FINANCIAL DATA

[all figures are in Rupees Millions]

ABRIDGED BALANCE SHEET

SOURCES OF FUNDS		31.03.2011	31.03.2010	31.03.2009
SHAREHOLDERS FUNDS
1] Share Capital		13.463	13.463	13.463
2] Share Application Money		0.000	0.000	0.000
3] Reserves & Surplus		122.517	90.141	70.070
4] (Accumulated Losses)		0.000	0.000	0.000
NETWORTH		135.980	103.604	83.533
LOAN FUNDS
1] Secured Loans		342.057	235.415	210.403
2] Unsecured Loans		57.835	30.908	29.366
TOTAL BORROWING		399.892	266.323	239.769
DEFERRED TAX LIABILITIES		0.000	0.000	0.000

TOTAL		535.872	369.927	323.302

APPLICATION OF FUNDS

FIXED ASSETS [Net Block]		62.791	68.531	58.240
Capital work-in-progress		0.000	0.000	0.000

INVESTMENT		5.769	8.769	3.268
DEFERRED TAX ASSETS		0.000	0.000	0.000

CURRENT ASSETS, LOANS & ADVANCES
	Inventories	365.502	222.641	197.181
	Sundry Debtors	259.773	116.416	71.117
	Cash & Bank Balances	28.128	21.682	20.895
	Other Current Assets	0.000	0.000	0.000
	Loans & Advances	91.914	67.967	81.202
Total Current Assets		745.317	428.706	370.395
Less : CURRENT LIABILITIES & PROVISIONS
	Sundry Creditors	77.056	56.371	32.382
	Other Current Liabilities	180.745	63.532	68.928
	Provisions	20.204	16.176	7.291
Total Current Liabilities		278.005	136.079	108.601
Net Current Assets		467.312	292.627	261.794

MISCELLANEOUS EXPENSES		0.000	0.000	0.000

TOTAL		535.872	369.927	323.302

PROFIT & LOSS ACCOUNT

	PARTICULARS		31.03.2011	31.03.2010	31.03.2009
	SALES
		Turnover	413.407	379.715	337.727
		Other Income	9.351	6.762	4.668
		TOTAL (A)	422.758	386.477	342.395

Less	EXPENSES
		Office Expenses
		Administrative Expenses
		Advertising Expenses
		TOTAL (B)	297.396	295.780	269.869

Less	PROFIT BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C)		125.362	90.697	72.526

Less	FINANCIAL EXPENSES (D)		70.210	53.352	40.116

	PROFIT BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E)		55.152	37.345	32.410

Less/ Add	DEPRECIATION/ AMORTISATION (F)		15.559	14.274	15.177

	PROFIT BEFORE TAX (E-F) (G)		39.593	23.071	17.233

Less	TAX (H)		7.200	3.000	2.780

	PROFIT AFTER TAX (G-H) (I)		32.393	20.071	14.453

	EXCESS PROVISIONS WRITTEN BACK		0.055	0.000	0.000

	PRIOR PERIOD EXPENDITURE		(0.072)	0.000	0.000

	BALANCE CARRIED TO THE B/S		32.376	20.071	14.453

	IMPORTS
		Raw Materials	99.847	47.503	32.888
		Capital Goods	0.000	0.000	0.443
	TOTAL IMPORTS		99.847	47.503	33.331

	Earnings Per Share (Rs.)		24.05	14.91	10.74

KEY RATIOS

PARTICULARS		31.03.2011	31.03.2010	31.03.2009
PAT / Total Income	(%)	7.66	5.19	4.22

Net Profit Margin (PBT/Sales)	(%)	9.58	6.08	5.10

Return on Total Assets (PBT/Total Assets}	(%)	4.90	4.64	4.02

Return on Investment (ROI) (PBT/Networth)		0.29	0.22	0.21

Debt Equity Ratio (Total Debt/Networth)		2.94	2.57	2.87

Current Ratio (Current Asset/Current Liability)		2.68	3.15	3.41

LOCAL AGENCY FURTHER INFORMATION

Sr. No.	Check List by Info Agents	Available in Report (Yes / No)
1]	Year of Establishment	Yes
2]	Locality of the firm	Yes
3]	Constitutions of the firm	Yes
4]	Premises details	No
5]	Type of Business	Yes
6]	Line of Business	Yes
7]	Promoter's background	Yes
8]	No. of employees	No
9]	Name of person contacted	No
10]	Designation of contact person	No
11]	Turnover of firm for last three years	Yes
12]	Profitability for last three years	Yes
13]	Reasons for variation <> 20%	--
14]	Estimation for coming financial year	No
15]	Capital in the business	Yes
16]	Details of sister concerns	No
17]	Major suppliers	No
18]	Major customers	No
19]	Payments terms	No
20]	Export / Import details (if applicable)	No
21]	Market information	--
22]	Litigations that the firm / promoter involved in	--
23]	Banking Details	Yes
24]	Banking facility details	Yes
25]	Conduct of the banking account	--
26]	Buyer visit details	--
27]	Financials, if provided	Yes
28]	Incorporation details, if applicable	Yes
29]	Last accounts filed at ROC	No
30]	Major Shareholders, if available	Yes
31]	Date of Birth of Proprietor/Partner/Director, if available	Yes
32]	PAN of Proprietor/Partner/Director, if available	Yes
33]	Voter ID No of Proprietor/Partner/Director, if available	No
34]	External Agency Rating, if available	Yes

UNSECURED LOANS

Unsecured Loans	31.03.2011	31.03.2010
	(Rs. In Millions)
Unsecured Loans	57.835	30.908
Total	57.835	30.908

OPERATIONS:

The performance of the company for the year has been satisfactory. The turnover of the company has increased from Rs. 379.720 Millions in 2010 to Rs. 413.410 Millions in 2011 registering growth 8.87%. the profit transferred to balance sheet is Rs. 32.380 Millions. The company has also improved its profit after tax in 2010-11 from Rs. 20.070 Millions to Rs. 32.380 Millions.

This year they have projected their turnover of Rs. 600.000 Millions and they are very much sure to achieve their target in the current financial year. This year they have already received confirmed orders of Rs. 800.000 Millions from Government/ Defence, Semi Government/ PSU’s (CEL/ BEL) including private sector for products like mirage tester, VOCS, Flight data recorder system, GPS unit, Point of safe etc.

BANKERS CHARGES REPORT AS PER REGISTRY

Corporate identity number of the company	U74899DL1979PTC009917
Name of the company	APPLIED ELECTRO MAGNETICS PRIVATE LIMITED
Address of the registered office or of the principal place of business in India of the company	M-120, First Floor, Greater Kailash – II, New Delhi – 110048, India Email: manojfcs@gmail.com
This form is for	Modification of charge
Charge identification number of the modified	10188130
Type of charge	Immovable property
Particular of charge holder	Bank of India, Okhla Sme Branch, Dsidc Complex, Okhla Industrial Area, Phase-1, New Delhi – 110020, India Email: okhla.newdelhi@bankofindia.com
Nature of description of the instrument creating or modifying the charge	Continuing oral assent
Date of instrument Creating the charge	24.04.2012
Amount secured by the charge	Rs. 784.900 Millions
Brief particulars of the principal terms an conditions and extent and operation of the charge	Rate of Interest As per terms of Bank's existing sanction letters and present sanction letter dt 23-4-2012 and schedule-III to the supplemental deed of Hypothecation dt 24.04.2012 Terms of Repayment As per terms of Bank's existing sanction letters and present sanction letter dt 23-4-2012 and schedule-III to the supplemental deed of Hypothecation dt 24.04.2012 Margin As per terms of Bank's existing sanction letters and present sanction letter dt 23-4-2012 and schedule-III to the supplemental deed of Hypothecation dt 24.04.2012 Extent and Operation of the charge First charge by way of EM of property situated at Plot No.354 and 355, Sector-Ecotech-1, Greater Noida together with land and building constructed/to be constructed thereon is to secure the various credit facilities sanctioned to the company to the extent of Rs.784.900 Millions to oral assent dt. 24.04.2012 Total WC fund based Limits Rs.310.000 Millions TL (OS) Rs. 44.900 Millions Total NFB Rs.430.000 Millions TOTAL FB&NFB MAXIMUM LIMITS RS. 784.900 Millions. Others for continuing security of First charge by way of EM of property situated at Plot No.354 and 355, Sector-Ecotech-1,Greater Noida together with land and building constructed/to be constructed thereon, Continuing Oral assent dt 24.04.2012 has been taken by the Bank-No other documents have been executed.
Short particulars of the property charged	First charge by way of EM of property situated at Plot No.354 and 355, Sector-Ecotech-1, Greater Noida together with land and building constructed/to be constructed thereon
Date of Modification	02.12.2011
Particulars of the present modification	amount secured is increased from Rs.754.900 Millions to Rs.784.900 Millions with the sanction of Adhoc CC Limit of Rs.30.000 Millions to oral assent dt. 24.04.2012 SECURITY: First charge by way of EM of property situated at Plot No.354 and 355, Sector-Ecotech-1, Greater Noida together with land and building constructed/to be constructed thereon. OTHER TERMS AND CONDITIONS REMAIN SAME.

FIXED ASSETS:

Ø Land

Ø Building

Ø Generator

Ø Type Writer

Ø Plant and Machinery

Ø Tools and Dies

Ø Electrical Equipments

Ø Office Equipment

Ø Vehicles

Ø Furniture and Fittings

Ø Computer

Ø Air Conditioner

CMT REPORT (Corruption, Money Laundering & Terrorism]

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

1] INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

2] Court Declaration :

No records exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

3] Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

4] Record on Financial Crime :

Charges or conviction registered against subject: None

5] Records on Violation of Anti-Corruption Laws :

Charges or investigation registered against subject: None

6] Records on Int’l Anti-Money Laundering Laws/Standards :

Charges or investigation registered against subject: None

7] Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

8] Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

9] Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

10] Press Report :

No press reports / filings exists on the subject.

CORPORATE GOVERNANCE

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

CONTRAVENTION

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs. 53.99
UK Pound	1	Rs. 83.72
Euro	1	Rs. 72.09

INFORMATION DETAILS

Report Prepared by :

BVA

SCORE & RATING EXPLANATIONS

SCORE FACTORS	RANGE	POINTS
HISTORY	1~10	3
PAID-UP CAPITAL	1~10	4
OPERATING SCALE	1~10	6
FINANCIAL CONDITION
--BUSINESS SCALE	1~10	6
--PROFITABILIRY	1~10	5
--LIQUIDITY	1~10	4
--LEVERAGE	1~10	4
--RESERVES	1~10	4
--CREDIT LINES	1~10	5
--MARGINS	-5~5	--
DEMERIT POINTS
--BANK CHARGES	YES/NO	YES
--LITIGATION	YES/NO	NO
--OTHER ADVERSE INFORMATION	YES/NO	NO
MERIT POINTS
--SOLE DISTRIBUTORSHIP	YES/NO	NO
--EXPORT ACTIVITIES	YES/NO	NO
--AFFILIATION	YES/NO	NO
--LISTED	YES/NO	NO
--OTHER MERIT FACTORS	YES/NO	YES
TOTAL		41

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended
-	NB	New Business	-

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.

MIRA INFORM REPORT

365.502

259.773

28.128

0.000

91.914

745.317

77.056

180.745

20.204

278.005

467.312

7.66

9.58

4.90

0.29

2.94

2.68

Unit